We all know the story: women earn less than men. But even as society and employers work towards closing the gender pay gap, there’s another inequality that women face that’s just as crucial to building their wealth: the investment gap.
Why women are not investing their money
According to CoreLogic’s 2025 Women & Property report*, Australian women are underrepresented when it comes to investing, with 40% of women reporting not having any investments, compared to 27.8% of men.
AMP’s Deputy Chief Economist, Diana Mousina says it’s the biggest financial mistake she sees women making today. You can see this from a high school age, going to uni and then going into the workforce. Women tend to be more risk averse and they don’t tend to be as into investing and making those investment decisions.
That is not a bad thing. There have been studies that show female portfolio managers who manage investments for clients smooth performance out, for example. But from the financial literacy bit for everyday women, it dampens the age that they get into investing and become more interested in it.
Why women should be investing
We know that time in the market equals money, because of the way that compound interest works.
Compound interest refers to the way returns compound on past returns for an investor over a long period. Essentially, it’s your money making more money, which then makes even more money – like a financial snowball rolling downhill, getting bigger and faster.
Investing doesn’t have to mean you need thousands of dollars to invest into the share market or into some sort of asset. It can be as simple as investing in $200 and building on that into the future.
How to start investing
The best way to start is with a budget. Make a financial plan and figure out how much additional spare cash you have for investing.
Investing can be in so many assets: housing, shares, superannuation. Even if you don’t have any additional cash right now make sure you are happy with your super fund and understand which portfolio you are invested in. You can also salary sacrifice into your super to help grow your balance even faster.
The way that we can invest now is so much more accessible to everyone. You can do it on your smartphone. There are so many platforms that you can use. And it can start from a very small amount.
*Source: CoreLogic’s 2025 Women & Property report
Source: AMP
